Home buyers need to think ahead
Sam Schneiderman, Broker-owner of Greater Boston Home Team continues his Monday series.
Last Monday, I wrote about lifestyle vs. budget. Some of you commented that potential buyers should think ahead 5 years and project what their needs are likely to be, especially now that real estate appreciation can’t be counted on.
From my experience and the comments on this blog, I know that many people bought homes without thinking too far ahead. Some were so blinded by love at first sight and the pressure of a hot market that they bought homes they should have walked away from. (When I’m called in to sell those homes, I always wonder what their buyer’s agent told them about the future marketability of the property before they made the offer!)
When I interview potential buyers, I ask questions to help put together a 5-10 year home ownership plan. That way, buyers can be reasonably sure that they’ll be able to stay be in their home long enough to weather a full real estate cycle and maximize the benefits of home ownership. Here are some of the questions:
- Why do you want to buy?
- How long do you see yourself living there? (If under 5-7 years, the discussion usually ends there unless they plan to hold the property as an investment.)
- Do you foresee changes in your future employment or location of employment?
- Do you foresee changes in your future income?
- Do you foresee changes in your future relationships that would change your living situation?
- Where are most of your family and friends located?
- Do you foresee having children living with you in the home?
- If so, have you thought about public vs. private schools?
- How important is the school system to you?
- If children are in your future, how far into the future?
- If children are in the future, will one of you stop working permanently or temporarily?
- Do you (or family members) have skills that can be used to improve the property?
- If you buy a home that needs work, how will you pay for that work?
- After you close, will you still have a comfortable amount of money to handle unforeseen circumstances?
- Can you describe your perfect home and neighborhood?
Perspective:
It’s easy to get seduced by a great home or neighborhood if you don’t have a plan. While that may satisfy your immediate needs, buying a home without a plan is like getting on a highway to go someplace without directions. You will end up somewhere, but it probably won’t be where you wanted to go.
